Conversion tracking is an essential part of search engine marketing because you are paying for your traffic and you want to know exactly what works and what does not work. It is basically measuring the results of your marketing efforts so you can do more of what works and less of whatever that does not work.
Leads Or Sales
First of all, determine what action you want to track? Is it leads or purchases? Maybe you want to track both? With the default conversion code given to you, you can only track either leads or sales and not both. If you want to track both, you need to use other tracking tools.
Thank You Page
You need to be able to access the page triggered after the action have happened, so that you can add your conversion tracking code on that page. Which is why you need your own domain and hosting rather than using a free website.
Action Name And Value
Name your action in specific words, also indicate if you are tracking your leads or your sales. If you are tracking sales or purchases, you can add a dollar value to your action. When you add a dollar value to your action, you will be able to see your returns within your paid search web interface.
Quick Test
Once done, test your ad by doing a search, clicking on your ad, clicking on the conversion page or thank you page then look inside your web interface to see if a conversion has taken place. If yes, you have successfully added your conversion tracking code.